44th Parl. 1st Sess.
May 30, 2024 10:00AM
Mr. Speaker, I would like to thank the opposition for putting forth another opposition day on one of Canada's most successful tools to reduce our carbon pollution. Carbon pricing works, and that has never been clearer.
Before I go on, I would like to say I fully support the Speaker's idea to have the member for Saanich—Gulf Islands take the first question so we can talk about how we fight climate change, not whether we fight climate change. The Conservatives seem hell-bent on letting our planet burn.
Carbon pricing works at the business level, and carbon pricing works at the personal household level as well. In fact, it increases the success of all other emissions reductions policies because it builds in a powerful incentive for energy efficiency right across the Canadian economy. We might call carbon pricing the sixth player on the ice in Canada's emissions reductions plan. ECCC's modelling shows that carbon pricing alone accounts for around one-third of the emissions reductions expected in Canada between 2005 and 2030. Other independent experts have calculated it to be even more effective in cutting Canada's carbon pollution.
The Conservatives do not need to listen to experts, whom they have said are so-called experts, but they should heed the advice of William Nordhaus, a Nobel Prize-winning economist, who just recently said that Canada is getting it right on carbon pricing, that we are getting it right on carbon reductions, that our pollution is going down as a result and that our economy continues to be very strong. Let me summarize quickly how our department calculates emissions reductions.
We use a program called EC-PRO. It is a computable general equilibrium model that allows us to perform complex statistical calculations. We begin by preparing a reference scenario that includes all current federal, provincial and territorial emissions reductions policies and calculates the total emissions expected by 2030. Then we prepare a second hypothetical scenario that excludes carbon pricing altogether. We also exclude all provincial carbon pricing policies, including those from Alberta, British Columbia and Quebec, which are not covered by the federal system. Finally, the difference is used to estimate the effect of carbon pricing on emissions. This results in a difference of 78 megatonnes of CO2 equivalent, which represents about a third of the total reductions that Canada plans to make between 2005 and 2030. This is according to our commitments under the Paris Agreement, which we reaffirmed when we formed government in 2015.
Our modelling also shows that the effect of carbon pricing is very rapid. It is one of the least expensive, least intrusive and quickest ways to reduce carbon emissions. By 2023, just the fourth year of this plan, our emissions would have been around 24 million tonnes higher without Canada's national minimum carbon price. It has the same effect as taking more than seven million internal combustion passenger cars off the road.
I will remind my colleague from the Conservative Party, who earlier asked a member about the calculations he used for the $670 savings the Conservative Party is boasting about and asked if he was going to drive his electric car, that electric cars do not require fuel. It seems to be lost on the Conservatives that they are an innovation that do not require the input of fossil fuels.
In short, putting a price on pollution works, and our data proves it. It is not just our data. It is also the data of 300 independent economists from across this country, renowned people who work at universities and whom the Conservatives continue to call so-called experts. If they have any experts, Conservative experts, who would like to come forward with some data, economic analysis or anything that indicates carbon pricing is having a negative impact on the real affordability challenges that Canadians are experiencing, I am here for it. I asked them for it back in December and have not seen anything since.
Carbon pricing continues to be the most efficient, simple and cost-effective way to meet our targets. It is a measure that encourages the whole population, every household and every business, to find ways to cut pollution, whether and however they would like to. It sends a powerful message forward of confidence to businesses to invest in cleaner technologies and be more energy efficient in the future.
It is truly mind-boggling to see all of the misinformation out there being spread especially by the Conservative Party of Canada. Carbon pricing does not raise the cost of living. Economists from across this country, people who are experts on these types of analyses, indicate that, yet the Conservative Party chooses to continue to toe that line, which is based on absolutely no factual data.
In provinces where the federal fuel charge applies, it represents a tiny fraction of inflation and of the increase in the price of groceries. As my colleague from the NDP pointed out, Trevor Tombe, from the University of Calgary in Alberta, said that it adds to the price of groceries a very negligible amount. We are talking about pennies on a full cart of groceries.
I would also just point out that there is a 10% supplement for people living in rural and remote areas, who do not have access to things like active transportation or public transportation. They might be more reliant on propane or natural gas, as other forms of heating are less available in rural Canada. We proposed increasing it by 20%, but the Conservatives have been delaying Bill C-59 for months now, withholding that money from Canadians.
For provinces under the federal pricing system, with the Canada carbon rebate, 80% of Canadian households receive a refund that is greater than what they pay. In fact, if carbon pricing were abolished, not only would clean energy investment, innovation and job creation all grind to a halt, but our low- and middle-income families would have less money in their pockets.
I would like to expand on another piece of false information that is being driven by the Conservative Party of Canada, with respect to how carbon pricing has an impact on our economy: No, carbon pricing does not hurt businesses, and it does not hurt the economy.
In other countries similar to Canada, cold ones that also get warm in the summer, we see that pricing systems like ours offer the stability to build more prosperous economies. Sweden, which put a price on carbon over 30 years ago, has managed to cut its emissions by a third and double its economy.
The same is true for us, such as in British Columbia, which has had its own system for more than a decade. Many members of the Conservative Party of Canada served in the B.C. legislature under the Liberal Party when it was instituted. They seem to have forgotten that it has been lowering their per capita emissions and per GDP emissions in the great province of British Columbia for decades now. They have also seen, over the exact same time, rapid economic growth and innovation. Congratulations to British Columbia. On that piece of policy, the federal government is proud to follow in its footsteps.
We also must consider the demand for clean innovation, which is growing worldwide. We have seen investments in Canada. In fact, foreign direct investment in Canada is at an all-time high, and that is because people want to invest here. It is a great time to invest in Canada. We have the green energy and the great ideas that the world really depends on when it comes to innovation and a green revolution. That is why they are coming here to do business.
Because carbon pricing attracts investment in clean energy technologies and low-carbon industry here in Canada, it allows Canadian companies to take the lead. If we abolished it, we would lose our position in the global race toward carbon neutrality and we would sacrifice all of the jobs that come with it. It would do serious harm to Canadian companies that are exporting to other countries with carbon markets that will impose carbon adjustment mechanisms at their border. That includes the entire European Union, for example. It also includes the U.K., and other countries plan to do so soon.
Canada has already made so much progress. As a result of the suite of climate change-fighting, emissions-reducing policies implemented since 2015, Canada is set to exceed our 2026 interim climate objective of a 20% reduction in emissions from 2005 levels. There goes another Conservative talking point up in smoke.
It is amusing when opposition members accuse us of missing climate targets, when they do everything in their power to kneecap the policies that are, in fact, getting us to achieving our targets. The most recent projections, published last December, suggest that Canada should achieve a 36% reduction by 2030. We are getting there. The latest national inventory report confirmed that emissions are consistent with our forecast and remain below prepandemic levels.
Canada's emissions, with the exception of the pandemic, have never been so low in 25 years. This is a great achievement, something that the entire House of Commons ought to be proud of and ought to be looking for ways to make even better. Electricity and heat production in the public sector has become less polluting due, in part, to further reductions in the use of coal and coke in those applications. Fugitive emissions from oil and gas extraction have also decreased.
The numbers are very clear. Carbon pricing works, and it will make it possible to achieve one-third of Canada's emissions reduction targets by 2030. It also helps ease the cost of living for families that need it the most. It is good for business and it is good for the economy. The revenue-neutral nature of our carbon pricing system is less costly than offering subsidies or adopting regulatory measures.
With respect to the Conservative motion today suggesting that we drop all levies and tax on fuel over the course of the summer, the suggestion that it would save a family $670 is obviously false. They would have to drive over 25,000 kilometres in those few months. It also really ignores the fact that Canadians who really need it receive an HST refund four times a year. They receive a rebate.
I remember, when I was growing up, that my mom really looked forward to that. There was usually a trip to Swiss Chalet when my mom received the HST rebate. It was really, really helpful for our family. At that time, I think it was about $90 four times a year, and it is more now.
However, more than that, the Canada carbon rebate is really supporting families, particularly those on the lower and modest income scale, not because they receive a bit more, as with the HST refund, but because everybody receives that incentive. Everybody receives the same amount. A family of four in Alberta receives the same as another family of four. The Conservatives have shamelessly called this some kind of a trick. It is not a trick; it is a rebate, a refund. The Canada carbon rebate is just like the Canada child benefit and just like all of the services and the programs we have implemented to lower poverty in the last eight years. The Canada carbon rebate really works and, like I said, it is less costly and less intrusive than offering subsidies or adopting strict regulatory measures. We absolutely must maintain it.
I do not need to remind members of the urgent need for action. It is, unfortunately, wildfire season once again. Our country is very vulnerable to climate change. I read this statistic just recently, and it is absolutely alarming. Canada is 0.5% of the global population, about 41 million people on a planet of more than eight billion people. However, over 40%, I think it was 45%, of families displaced from their homes as a result of wildfires in 2023 were Canadian. Canada is extremely vulnerable to the impacts of climate change. We warm faster and we dry faster. When it is dry, as is forecasted for this summer, we get more wildfires, and more intense wildfires, and that means more Canadians will be driven from their homes.
Every day, Canadians see the costly impacts of climate change, from droughts to wildfires and floods. Climate change costs average Canadian households about $720 a year. The costs of climate change are not spoken about enough in this House of Commons. Climate change is one of the leading causes of grocery inflation. People go to the grocery store and say, “Hey, why is lettuce $3.50? Why are tomatoes all of a sudden $1.99 or $2.99?” It is because of climate change. It is because those crops are grown in places that are vulnerable to climate change and the extreme weather that has an impact on drought and on all sorts of important measures. It really speaks to the need for a more fulsome food strategy in Canada, and I support that as well.
For families that are having a difficult time paying for groceries, the Canada carbon rebate really supports them, and it is important to note that it supports lower- and modest-income families even more. The next rebate is coming on July 15 and, for many families, it will be more than the average because if they did not submit their taxes by April 15, that rebate will be quite a lot higher than it was going to be alternatively. July 15 is the next installment for the Canada carbon rebate. Whether families live in Alberta, Manitoba, Saskatchewan, Nova Scotia, as your family does, Mr. Speaker, P.E.I., Newfoundland, New Brunswick or Ontario, they all will receive the Canada carbon rebate on July 15.
Over the same period of time that we have seen all of these changes, household revenues could decrease by as much as $1,900 just because of climate change. Climate change is having a really negative impact. There was actually an op-ed in the National Post by a former Conservative MP talking about how climate change might actually be good for Canada. What a cynical, pessimistic, horribly misguided viewpoint that would be. Climate change is costly, and Canadians are more vulnerable than average citizens around the world.
That is not to mention the physical and mental health problems it causes. Not that long ago, only about a year ago, the skies in Ottawa were completely turned orange from wildfire smoke, and members in this House had a difficult time breathing. How quickly those Conservatives forget.
The recently announced 2024 federal budget was named “Fairness for Every Generation”. Generational fairness means that we cannot saddle our children, our grandchildren and our great-grandchildren with cleaning up our climate mess. Indeed, it is our obligation to make changes to our emissions behaviour so that we leave the planet better than we found it, like a good campsite. We are currently in the century of climate impact, and we cannot kick this can down the road: never again. Previous generations have been talking about climate change, global warming and other impacts on our natural environment, on our country and on our economy. I will not be one of those who ignore it in favour of other priorities, like higher oil and gas profits, as the Conservatives seem so committed to do.
Carbon pricing gives us a much better chance of success than virtually any other policy. It is also important to recognize that our carbon-pricing protocol is just one measure in a suite of protocols.
As I said, Canadians are on the front lines of the climate crisis. Climate change manifests itself in our lives on a daily basis, whether it is with respect to air quality or, in the unfortunate scenario that many Canadians have experienced in the last year, an evacuation order. It has already forced us, and will continue to force us, to adapt and change the way we manage our businesses, organize our lives and interact with nature.
Warmer temperatures come with more intense and frequent weather events everywhere on earth, but especially here at home. On a global level, it has been estimated that between 2000 and 2019, extreme weather events have caused damages averaging around $143 billion. That is $16 million per hour throughout the entire year for the last 20 years. Climate change is a real threat to our economy, to our livelihoods and to our very lives.
Here at home, Canadians have experienced first-hand the severe weather events, such as hurricanes, storms, flooding, extreme heat and wildfires, which are now common, severe and more disastrous than ever. That is why I was actually very disappointed to hear the previous speaker on this from Nova Scotia talking as if climate change and extreme weather were not connected. They indeed are. We need not look any further than to some of our great Canadian paleoclimatologists and amazing economists. People research this, and members of this House ought to lean in on some of that economic and paleoclimatic data for insight.
These kinds of weather events have had major impacts on property and infrastructure. They cause environmental damage. They threaten our very lives, and our food and water security. The impact of extreme weather events on Canadian communities is not limited to one given place. We see those changes across our country and severe weather from coast to coast to coast.
When we are looking at the financial impacts of extreme weather, six out of 10 of the costliest years on record in Canada were in the last decade. Indeed, 2023 was the hottest year on record, and 2024 is slated to be even hotter. January of this year had the highest temperature ever recorded in a January on record. February was the hottest February ever on record. March was the hottest March ever on record. It is staring us right in the face. The climate crisis is not an optional thing that we must act on; it is 100% mandatory. Future generations are depending on us.
If the Conservatives want to continue to use their slogans and their misguided approach with absolutely no data, to further inflame the conversation around the affordability crisis without offering any solutions, I would just ask that over the course of the summer they travel to a university or ask a climate scientist for a little bit of insight so they can come back to this House in September with some data to back up their claims on either one of these two things: They are suggesting that carbon pricing is ineffective in reducing our emissions, or they are suggesting that the Canada carbon rebate is not supporting affordability right across this country.
Both are true. They are facts. It is hard to argue with facts when economists point to them and say, “Hey, what you just said is actually not controversial; the math works out. We did the math, and we agree. That is actually supporting Canadians.”
Speaking of poverty reduction, I came to this House because I was concerned that poverty in Canada was legislated. I am a strong believer that we can just decide as a country to implement some policies to reduce poverty. I also know that poverty and climate change are linked. Climate change actually impacts poorer, more modest-income Canadians more significantly. When we have a heat wave in this country, seniors without air conditioning suffer more than wealthy people with a swimming pool in their backyard, who can take a dip and cool down.
Communities that are mostly paved, without a lot of canopy, are a lot hotter than communities with a nice canopy and lots of trees. Having grown up in a co-op with lots of nice trees, a co-op that had the forethought 40 years ago to plant a bunch, I knew that. We could hang out in the park in our little co-op and play softball. When it got hot, we could hang out underneath a tree. That is not the same in every community. A lot of those lower-income apartment buildings have a lot of concrete and not a lot of trees. Climate change impacts more modest-income Canadians worse.
Just to close up, the motion in question here is to reduce gas prices over the course of this summer so that Canadians could save money, according to the Conservatives. However, what they are ignoring, as they always do, is the Canada carbon rebate. The Canada carbon rebate will send, in Alberta, $450 quarterly, four times a year, so $900 over the next six months or so, to Canadians. That is actually more than the amount the Conservatives are saying folks will save.
The Conservatives want to axe the Canada carbon rebate. They want to take that money away from lower- and middle-income families and make sure that oil and gas companies can profit. I will say it once again: Who needs an oil and gas lobby when we have the Conservative Party of Canada?
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- May/30/24 12:34:55 p.m.
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Madam Speaker, I am very firmly committed to carbon pricing. The industrial carbon price makes up between 20% and 48% of our emissions reduction. The consumer carbon price makes up between 8% and 14%. My commitment is that we reduce emissions in Canada to meet our international climate targets. Honestly, I am not married to any particular policy, but I am committed to ensuring that we have a credible climate plan, and right now, that means including carbon pricing.
The fact is that the Conservatives are saying to scrap the carbon tax, but they have not been clear about whether that means the industrial carbon price as well, which could be about half of our emissions reduction in Canada that all of a sudden would no longer be happening. However, the Liberals, unfortunately, have failed to close the loopholes in the industrial carbon price. They failed to hold big polluters accountable. It is no wonder that people are questioning the Liberal government and its commitment to climate action when it waters down its policies on the emissions cap, fails to implement bold climate policies and buys a pipeline.
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- May/30/24 12:41:07 p.m.
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Madam Speaker, there are many who say that because our emissions are so small compared to global emissions, we should not do anything. How does the member respond to that logic?
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- May/30/24 1:38:25 p.m.
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Madam Speaker, when I asked the Leader of the Opposition about industrial carbon pricing, he said that the industrial carbon price did not exist, which is a new level of misinformation.
However, I am critical of the Liberal government's loopholes that have been left in the federal backstop that allow companies like Suncor to pay 14 times less than average Canadians. The government could close the loopholes in industrial carbon pricing, strengthen our emissions reduction plan, get greater emissions reduction and also hold the biggest polluters to account. It could also enshrine industrial carbon pricing in law so that if, in the future, there were another government that wanted to scrap it, it would be much more difficult to take away this vital policy, which is doing the bulk of our emissions reduction.
I am curious if the member is pushing his government to close the loopholes and enshrine industrial carbon pricing in legislation?
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- May/30/24 1:39:26 p.m.
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Madam Speaker, I am always pushing my government, whether in the House or in our caucus meetings, to do as much as we possibly can as it relates to reducing GHG emissions. A model that incentivizes people to make different choices, such as pricing pollution, whether it be at the retail or industrial level, will benefit tangible results in the future. This is not just me saying this. A vast majority of economists are saying this.
The joint signed letter of economists throughout Canada has over 400 signatories now. They believe that pricing pollution is an effective way to deal with GHG emissions and reduce them, and that more people are better off under the carbon rebate program.
It is only the Conservatives, with their rhetoric and their misinformation, who are informing people otherwise. If we were to ask the vast majority of people, they would agree that there are certainly benefits to them and, in particular, the least fortunate.
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- May/30/24 3:06:01 p.m.
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Mr. Speaker, taxing climate change, reducing emissions and moving to a low-carbon future is a top priority for Canadians and for our Liberal government. We are implementing an aggressive climate action plan while trying to keep costs down for Canadians.
We recently learned that the PBO has agreed to do a revised analysis on his report on the costs of carbon pricing to Canadians, as he acknowledged some errors in the original analysis.
Could the Minister of Environment update the House on the benefits of the Canada carbon rebate to Canadians and comment on the PBO's recent publication?
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- May/30/24 3:26:50 p.m.
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Mr. Speaker, we are talking about the Conservative Party's “axe the tax for summer” motion, which seeks to make life more affordable for Canadians and, in particular, help them with their summer road trip. I have related the story of my fond memories of taking road trips as a child. This motion comes in the context of a cost of living crisis that Canada finds itself in the middle of. What is the NDP-Liberal coalition going to do? If members can believe it, they have decided to actually hike the carbon tax by yet another 23%. This is just one step in their plan to quadruple the carbon tax over the next six years, making everything more expensive at the worst possible time.
Now, the Parliamentary Budget Officer has been clear that most families will pay more in the carbon tax than they receive in the rebate. This year, the carbon tax will cost the average Canadian family $1,963. I know that members on the other side of the aisle will jump up and say that we have it all wrong, that 80% of households are actually better off being taxed until it hurts; then the government can come to the rescue, give them some of their money back and look like heroes. However, we are saying that people should not be fooled by that sleight of hand. What the Liberals and the NDP are not telling us is that the carbon tax adds inflationary cost to everything we buy, and that has a negative impact on our economy, on our businesses and on our families.
Here is a really good example of how that works out. Last weekend, my wife, Inga, and I took a road trip down to southern Ontario. We visited with our friends Ken and Julie Wall, who are vegetable farmers and owners of Sandy Shore Farms, on the beautiful shores of Lake Erie. They related to us how it is becoming more and more difficult to compete with farmers from jurisdictions with lower taxes, such as California, Mexico, and even Central and South America, which are competing for the national North American market.
This is what Ken sent to me in an email: “I'm an Ontario producer, and because of the Canadian carbon tax designed to reduce emissions, I get priced out of the market by competitors in non-carbon tax jurisdictions. The end result? The Canadian ag sector collapses and the carbon footprint of asparagus, which Canadians consume, grows dramatically. It is utter insanity.” That's what they do; they're specialists in asparagus.
Now, if Ken is listening, I agree with that. It is utter insanity. This does not make economic sense at all.
What is the solution? Conservatives want a carbon tax election, and the sooner the better, for entrepreneurs and farmers such as Ken, for other businesses across the country, for all consumers and for all Canadians. After we win the carbon tax election, we will axe the carbon tax as soon as possible. However, in the meantime, for the here and now, we are calling on the NDP-Liberal coalition to give Canadians a summer break by axing the carbon tax, the federal fuel tax, and the GST on gasoline and diesel fuel between Victoria Day and Labour Day. In that way, families could afford a simple summer vacation again.
To pay for this, Conservatives are calling on the government to cut back on the spending on overpriced outside consultants, which is to the tune of $21 billion and has gone up by more than 100% since the Liberals took office in 2015. We are told that we have an excellent civil service, so why do we need outside consultants?
After nine years of mismanagement of our economy by the current occupant of the Prime Minister's Office, life has become difficult for many Canadians. While the Prime Minister is off on his government-funded vacation, ordinary Canadians are having trouble funding even a simple road trip. Canadians deserve relief, not more taxes; they should be able to afford a simple road trip like the ones I took when I was a child. Let us do it for them.
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